The idea of coworking spaces was created to help organisations grow their business.
Over the years, coworking has proved to be a powerful force behind the success of many companies today. This is a major reason why many organizations of varying sizes and budgets opt for coworking spaces.
But this huge demand for coworking spaces didn’t appear out of thin air.
Even though coworking spaces offered the best ambience and facilities from the moment of their inception, it took some time before companies made the jump from traditional offices to coworking spaces.
Uber. Ofo. Instagram. Hootsuite. Indiegogo. Spotify.
What do you think is common between these largely successful companies?
They all are companies that started at coworking spaces.
Besides a terrific idea, these companies realized the importance of coworking spaces as a stepping stone to their quest for success. And their success is there for everyone to see.
The benefits that coworking spaces offer are many.
From networking benefits to leasing costs to increased flexibility, coworking spaces offer an ambience that is unmatched by most traditional offices.
Traditional offices require payment of huge leasing costs, that may or may not be refunded. Leasing costs refer to an amount of money that companies have to pay in addition to the rental costs. The leasing cost is generally refunded at the end of the specified duration of time and it amounts to a total of 4-5 months of rent.
This makes a traditional office space an expensive affair.
Companies, especially startups, may not be able to afford that kind of heavy lease.
This is where coworking spaces come to the rescue.
Coworking spaces offer seats on a per month or day basis and the leasing cost is only of 2-3 months rent. Thus, at coworking spaces, the monthly rent and thus, the lease cost, is much less as compared to traditional offices.
This is why startups choose coworking spaces over traditional offices.
Startups are always on the lookout for fresh talent who can elevate their idea to new heights. They’re also in search of investors and companies they can collaborate with or be of service to.
Traditional offices make networking difficult due to the absence of any “outsider”. Coworking spaces make networking easy due to the presence of individuals and organisations from different backgrounds.
If you want to read about the benefits of coworking spaces in detail, this blog is what you need :
Successful companies that started in Coworking Spaces
Uber is an app that provides transport services worldwide.
One night in Paris, Travis Kalanick and Garrett Camp couldn’t find a taxi. They decided to come up with a solution to this problem.
This is how Uber was born.
They were unable to find a ride. Which then resulted in this shared economy platform where anyone using the app could find a ride.
Uber started off in a shared workspace by the name of The Yard. It was located in New York.
A few years later, they shifted to a coworking space called RocketSpace in San Francisco.
9 years ago, in 2011, Uber was a team of 8 members that set base in a coworking space by the name of Tech Space in San Francisco.
Today, Uber is represented in 80 countries across the globe with operations in almost 800 metropolitan areas. It has also expanded to Uber Eats, Uber Freight and Uber Help offering various transport-related services.
Instagram is an image-based social platform created by Mike Krieger and Kevin Systrom.
However, the little known fact that this hugely popular social media app was created in just 8 weeks in a coworking space called Dogpatch Labs in San Francisco.
The unlimited power of coworking can be seen in how Instagram has grown. The flexibility coworking offered the photo-sharing platform led to it being bought by Facebook for $1 Billion.
Two visionaries by the name of Mike Krieger and Kevin Systrom began a social network called Burbn.
During their time at Dogpatch Labs, a coworking space, Burbn was transformed into Instagram. Both founders realized that photo filters were what made the app so popular. So they redesigned the entire application in two months and relaunched it as Instagram.
The most popular photo-sharing app was originally developed as a basic idea when Mike Krieger and Kevin Systrom locked themselves in the conference room of DogPatch Labs.
Later, Instagram was purchased by Facebook for over $1 billion.
Ofo is known all around the world as a Chinese bike-sharing startup that is environment-friendly and also fosters sustainability.
Ofo was founded in 2014.
The system uses its app to unlock and locate nearby bicycles and charges at an hourly rate for use.
Ofo deployed over 10 million bicycles in the year 2017, spread over 250 cities and 20 countries. Ofo’s valuation stood at $2 billion and had over 62.7 million monthly active users.
Ofo is based in a London coworking hub. Since its opening in 2014, Ofo has managed to launch the service in 21 countries.
People can hire a bike in any of the 250 countries without having to worry about where to leave it and how to lock it.
Today, Ofo is the largest “station-free” cycle-sharing company that promotes an environmentally friendly approach to life, sharing economy and sustainable living.
Indiegogo is a crowdfunding portal for young entrepreneurs who possess amazing ideas but do not have any ideas for the realization of their ideas.
The site is one of the first sites to offer to crowdfund.
Founded in 2008, Indiegogois an app that allows users to gather funding for an idea, charity, or start-up business. Indiegogo charges a 5% fee on contributions.
Indiegogo is one of the companies that started in coworking spaces in San Francisco. Crowdfunding and support are exactly what coworking value.
As of today, Indiegogo is the largest crowdfunding platform all across the globe.
The crowdfund raised thus far has been $1.5 billion.
Spotify is a very popular music app. But very few know that it actually started at a coworking space by the name of RocketSpace based in San Francisco.
Spotify is a company that started off in Sweden and then marked its territory in the USA to become one of the biggest music streaming sites.
Just like Uber, they started their journey at RocketSpace coworking space in San Francisco.
Although Spotify originated in a very humble manner, the audio content platform is now the most recognisable apps across the globe.
The famous music app has provided 159 million users with active podcasts and music directly on their devices.
Spotify has an estimated valuation of $8 billion today and is one of the most successful and recognizable companies across the world.
Ziprecruiter is a startup which is now one of the best brands in the recruitment industry. Due to Ziprecruiter, finding jobs is now very convenient for suitable job candidates.
It is an American employment marketplace for job seekers and employees.
This startup was founded in 2010 by Ian Siegel, Joe Edmonds, Ward Poulos and Will Redd.
The origins of Ziprecruiter was set in a coworking space based in Los Angeles.
The successful company is helping many other businesses to earn money by recruiting the right talent.
In 2018, the company reported that over 1.5 million businesses and 430 million job seekers used its platform.
Wanderfly was founded with the objective of bridging the big market gap for travellers
A woman named Christy Liu, in the year 2011 wanted to create a travel website which would help people explore new experiences based on budget and interest.
This led her, along with her team of three other co-founders to create Wanderfly.
In their initial days, Wanderfly was based out of a coworking space in New York by the name of Projective Space. The reason why they chose a coworking space was networking.
They wanted to collaborate with others and fill the big gap in the travelling niche.
Wanderfly became a huge hit in a short span of time.
After a year of operations, Wanderfly was acquired by the famous website TripAdvisor.
Nuracode is a startup that handles all code-based problems. Nuracode also provides solutions for digital strategies.
When Nuracode started off, it was as a very small startup based in a coworking space but today, it is a major tech company.
Today, Nuracode caters to the needs of software development for Fortune 500 countries.
As of 2019, the organization had raised $370 million.
They have funded 44,000 water projects in 28 countries.
Charity: water was founded by Scott Harrison. He was a New York club promoter for ten years.
Harrison realized that the problems related to education, safety, and health ultimately could be traced back to the lack of clean water and basic sanitation systems.
The secret to their success is coworking spaces.
In today’s age, almost no company ignores the world of social media.
It is an important part of any company’s marketing strategy and presence.
However, maintaining a social media presence on the numerous platforms available today is a pretty difficult task.
In the year 2008, Ryan Holmes had an idea about how to improve things in this area. He created software that could integrate accounts from almost all social platforms, including Facebook, Instagram, LinkedIn, YouTube, and Twitter. He called it Hootsuite.
The culture of coworking helped Hootsuite to generate valuable connections which helped them thrive.
What are the reasons why successful companies started in coworking spaces?
The rent gets divided between other companies and freelancers in coworking spaces, so the startup has to pay much less for an office space.
The lease cost charged by coworking spaces is also very less as compared to traditional spaces. Hence, startups can grow their business without having to bear a huge financial burden.
Networking is another main reason why companies start at coworking spaces.
In coworking spaces, organisations come across freelancers who turn out to be potential clients or partners in projects.
They can also find potential employees at these coworking spaces.
Coworking spaces offer many options to startups.
Startups work in a very different culture when compared to big organizations. They need a variety of options to choose from. There are startups who have less than 10 members. There are startups that have more than 10 members.
People aspire to work at prime locations in the city that are easily accessible by various forms of transport.
A coworking space can prove to be the perfect workspace for new startups and entrepreneurs where they get traditional office resources at nominal rental costs.
These were 10 highly successful companies who started in coworking spaces. They greatly benefitted from the experiences of working at coworking spaces.
Coworking spaces help nurture a business by cutting overheads and easing administrative duties.
Coworking spaces can be your source of inspiration or the platform that takes you to the next level.
Plus, coworking spaces almost always have great coffee.
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